Coventry Building Society - BEWARE

steve_cov

The Coventry is currently high in the best buy tables, including Martin's, for its current account with 6.35% interest on all credit balances.

But I thought I'd share my experience of switching from A&L and using the switching service. This has been execrable and should sound a note of caution to other Money Savers.

I opened my account on 11 September (six weeks and two days before my October pay day... this is important, since the literature advises that switching takes six weeks) - but by 9 October, having advised my payroll department of my new current account, I noticed that none of my DDs or SOs had been transferred to my new account. I was facing the possibility of having cash at the Coventry and all my mandates still sitting at A&L.

The Coventry's customer service [sic] centre advised that the switching team is back-office only and "doesn't speak to" the customers whose switches they are supposedly enacting. Through this intermediary arrangement, I was told that all was proceeding as planned, but that there had been a week's delay before my form had been processed, and then that A&L had not responded within three days as required.

Curious to the last, I then checked with A&L to find out why they had delayed. They had no record of such a request, so I returned to the Coventry who confirmed that - in fact - they had NOT had a response from A&L but that they had chased this a further three times, also without response. So it wasn't their fault.

On further questioning, I found that they had been writing to A&L in Bootle using a Basildon postcode - all were returned to sender. Eventually, in the absence of a written reply, they agreed to speak to A&L instead.

With a week to pay day, only one of my DDs has been transferred over. The SOs were all transferred, but only from November so I had to alter these myself and cancel the old ones at A&L.

I wonder what sort of overdrawn expenses I would have incurred if I hadn't taken the matter into my own hands.

In short, the service has been appalling and I would not recommend it. I am seriously considering moving to another bank and handling the switch myself, irrespective of the obvious inconvenience this will cause.

Has anyone else had similar problems taking up the Coventry account?

Biggles

I had poor service from Coventry trying to open an online savings account. They banked the cheque but never gave me access to the account. In the end I had to phone up to close the account and get my money back.

But please note: as with most Coventry accounts, they don't mean what they say. This is NOT a 6.35% account. This is a 5.5% account with a 0.85% bonus for the first year. If you're changing current accounts especially, you don't want to have to change every year.

Avoid.

masonic

I'm actually in the middle of opening one now. Your post and others like it are exactly why I'd never use a switching service. This problem isn't specific to Coventry.

[Deleted User]

I've got a few accounts with Coventry and always find them very helpful on the phone.

Switching services are tricky because you're involving two banks and each usually blames the other so are best avoided!

RayWolfe

Never, ever rely on a third party to switch payments and receipts. If they won't open an account without a switching service don't change to that bank.
Do it yourself and you can ensure it's done correctly and to time. If you want to change bankers, keep the old account until everything is done.

Bernard_Coleslaw

I completely agree with the other comments being made about switching services. They are typically the weak link in the chain as you're relying on two banks (and any number of originators) to talk to each other - never a recipe for success at the best of times.

It means that relatively minor mistakes (like in the OP's case, getting a postcode wrong) can have serious impact.

I sometimes think that, given the choice, banks and buidling societies would probably prefer to not offer switching services. However, many customers simply wouldn't switch if it meant them having to do any work (plus the Banking Code pretty much makes it mandatory in any case).

When I switch accounts I try as much as possible to do as much of the legwork myself. It's really not rocket science these days with online banking, etc, even with the number of DDs I've got!

The moral of this story is: if it's important to you, do it yourself.

Rafter

Biggles wrote: »

But please note: as with most Coventry accounts, they don't mean what they say. This is NOT a 6.35% account. This is a 5.5% account with a 0.85% bonus for the first year. If you're changing current accounts especially, you don't want to have to change every year.

Avoid.

Biggles,

At least they are honest that there is a bonus and at least they pay 6.35% on the full amount in your account, not just the first couple of thousand.

Can you tell me any bank that offers a consistant rate of 5.5% on a current account on the whole balance?

If you really think the likes of Alliance & Leicester, Abbey and Halifax are going to pay top rates of interest year after year on a significant balance then you must be very naive! Just look at Halifaxes 3 year old current account products paying well below base rate. No bonus, but they can reduce the rate at will.

Banks can't pay above base rate long term on savings because they cannot lend the money on deposit out at a higher rate without taking a big risk with your savings. Nor can they consistently offer better rates on average than Building Societies which don't have to give a slice of profits to shareholders as dividends.

If you don't want to have to change account every year and you don't want to be stung on hidden charges for foreign transactions etc, stick with the likes of Nationwide for your current account. If you can be bothered to switch each year then by all means surf the best buy tables - just be prepared for switching hastles, having to monitor your balance daily to optimise the interest etc. Personally life is too short.

R.

Milarky

Rafter wrote: »

Can you tell me any bank that offers a consistent rate of 5.5% on a current account on the whole balance?

The OP wasn't unhappy with the rate - it was a gripe about the switching service. He doesn't say why he chose to use the service (presumably because the offer to move lots of direct debits is attractive - possibly an argument for bank customers to avoid having DDs on their accounts as much as possible in the future?) but if you can run more than one current account it does make sense to do so and to leave your direct debits in an established account (like Nationwide), simply move the standing orders to a new account yourself, gradually migrate the DDs (and as new ones are added) yourself by contacting the DD collectors individually and fund the established account by transfer from the new (higher interest?) one. Remember that 'Faster Payments' are just around the corner (we are told) and when we have them we can move funds around from bank account to bank account within a day and so cover all payments taken (provided we make a note to ourselves to check them)

Biggles

Rafter wrote: »

Biggles,

At least they are honest that there is a bonus and at least they pay 6.35% on the full amount in your account, not just the first couple of thousand.

Can you tell me any bank that offers a consistant rate of 5.5% on a current account on the whole balance?

Well, you do have to drill down for that information or you wouldn't know, but I only mentioned it in passing after my main point about finding Coventry to be inefficient.

I'm happy with the 4.25% on my LTSB account on the basis that I find them efficient and I don't use my current account as a savings account anyway.

I certainly agree with the comments on the OP's subject of switching accounts - the last thing you do is tell the banks involved. You open a second account, set up and cancel your DDs, SOs and salary payments etc yourself, then, if needed, close the old account.

ukdutypaid

Neither bank does change the DD's.............. It's the payee's who have to do that. If they don't play ball in time, then that's when you're stuffed......

It's only the SO's that they can change... They say DD's and SO's because if they said DD's are tricky then it would put even more people off......

Rafter

Milarky wrote: »

The OP wasn't unhappy with the rate

I wasn't responding to the OP. I was responding to Biggles who was suggesting you avoid their current account because of the Bonus and because of his bad experience with a savings account.

R